\name{covarianceMF}
\alias{covarianceMF}
\title{Covariance Matrix Estimate}
\usage{
  covarianceMF(beta, stockM2, factorM2)
}
\arguments{
  \item{beta}{(N x k) matrix of factor loadings (i.e. the
  betas) from a statistical factor model}

  \item{stockM2}{vector of length N of the variance (2nd
  moment) of the model residuals (i.e. idiosyncratic
  variance of the stock)}

  \item{factorM2}{(k x k) matrix of the covariance (2nd
  moment) of the factor realizations from a statistical
  factor model}
}
\value{
  (N x N) covariance matrix
}
\description{
  Estimate covariance matrix using a statistical factor
  model
}
\details{
  This function estimates an (N x N) covariance matrix from
  a statistical factor model with k factors, where N is the
  number of assets.
}

